ARM 401 REVIEW; QUESTIONS WITH
DETAILED VERIFIED ANSWERS;
ALREADY GRADED A; 2026
A data analysis technique that an insurer would likely use
to analyze claims adjusters' notes is - correct
answer- text mining
A female job seeker was denied employment at a local
law firm as she did not fulfill a job requirement that all
employees be at least six feet tall. An employment
practices liability claim was filed against the law firm
alleging discriminatory actions. The type of discrimination
described in this instance is - correct answer-
Disparate impact.
A financial analyst wants to evaluate the effect that a
predicted increase in the cost of steel will have on the net
income of East Side Manufacturing. Which one of the
following measurement techniques should the analyst
use? - correct answer- Earnings at risk
,A financial ratio of income adjusted for risk to the amount
of capital required to maintain solvency at a given risk
tolerance level is called - correct answer- Risk-
adjusted return on capital.
A land developer hired Build Rite Construction Company
to build three sets of starter homes in a Metro City
suburb. The construction is to be completed in phases,
with completion of each phase (Phase 1, then Phase 2,
and then Phase 3) required before the next construction
phase can begin. As this is a large scale project, Build
Rite's controller used computer simulation to analyze the
time necessary for completion of each phase. The best
case, most likely, and worst case results, respectively, are
summarized below. Based on the simulation results,
which one of the following statements is true? -
correct answer- There is less uncertainty about
the time needed to complete Phase 1 than there is about
the completion time for Phase 2 and Phase 3.
A main difference between decision trees and event trees
is - correct answer- That event trees analyze
the consequences of accidental events rather than
decisions
,A new coffee company based in Indonesia has found a
demand for its product in North America. As such, it has
established three locations in the United States and one in
Canada. The Board of Directors has concerns about the
'farm to fork' concept being it is sending product many
miles from Indonesia to North America. As a result, the
board has highlighted a few concerns that could be
showstoppers for a successful North American product
launch. They have determined that their biggest internal
exposure is employment issues as North American
companies function differently than those in Indonesia.
On the external front, they have circled
political/regulatory risk as the biggest hurdle to a smooth
operation. What are two mitigation techniques that
would help quell their concerns on having a smooth
supply chain management system to North America? -
correct answer- Educate staff on human
resource management and monitor the governmental
environments where the businesses operate.
A phase in the life of a system when the basic purpose
and preliminary design of the system are formulated is
the - correct answer- Conceptual phase
, A predictive approach to data analytics involves -
correct answer- Providing a method to be used
repeatedly to provide information
A risk manager for a grocery store wants to see if there is
a correlation between the frequency of customer slip and
fall accidents, and the time of day. Which one of the
following is a relatively simple data analysis technique
that the risk manager could use to determine this
correlation? - correct answer- Bubble plot
A risk manager's goal when using a social network is -
correct answer- To reach as many end users as
possible with the minimum amount of effort.
A worker for Build-Rite Construction Company removed
the pressure gauge and warning sticker from an air
compressor. The pressure gauge automatically shuts off
the compressor when the pressure gets too high. The
sticker warned that an explosion could result if the
pressure was too high. Without the pressure gauge in
place, the air compressor exploded. The explosion killed
DETAILED VERIFIED ANSWERS;
ALREADY GRADED A; 2026
A data analysis technique that an insurer would likely use
to analyze claims adjusters' notes is - correct
answer- text mining
A female job seeker was denied employment at a local
law firm as she did not fulfill a job requirement that all
employees be at least six feet tall. An employment
practices liability claim was filed against the law firm
alleging discriminatory actions. The type of discrimination
described in this instance is - correct answer-
Disparate impact.
A financial analyst wants to evaluate the effect that a
predicted increase in the cost of steel will have on the net
income of East Side Manufacturing. Which one of the
following measurement techniques should the analyst
use? - correct answer- Earnings at risk
,A financial ratio of income adjusted for risk to the amount
of capital required to maintain solvency at a given risk
tolerance level is called - correct answer- Risk-
adjusted return on capital.
A land developer hired Build Rite Construction Company
to build three sets of starter homes in a Metro City
suburb. The construction is to be completed in phases,
with completion of each phase (Phase 1, then Phase 2,
and then Phase 3) required before the next construction
phase can begin. As this is a large scale project, Build
Rite's controller used computer simulation to analyze the
time necessary for completion of each phase. The best
case, most likely, and worst case results, respectively, are
summarized below. Based on the simulation results,
which one of the following statements is true? -
correct answer- There is less uncertainty about
the time needed to complete Phase 1 than there is about
the completion time for Phase 2 and Phase 3.
A main difference between decision trees and event trees
is - correct answer- That event trees analyze
the consequences of accidental events rather than
decisions
,A new coffee company based in Indonesia has found a
demand for its product in North America. As such, it has
established three locations in the United States and one in
Canada. The Board of Directors has concerns about the
'farm to fork' concept being it is sending product many
miles from Indonesia to North America. As a result, the
board has highlighted a few concerns that could be
showstoppers for a successful North American product
launch. They have determined that their biggest internal
exposure is employment issues as North American
companies function differently than those in Indonesia.
On the external front, they have circled
political/regulatory risk as the biggest hurdle to a smooth
operation. What are two mitigation techniques that
would help quell their concerns on having a smooth
supply chain management system to North America? -
correct answer- Educate staff on human
resource management and monitor the governmental
environments where the businesses operate.
A phase in the life of a system when the basic purpose
and preliminary design of the system are formulated is
the - correct answer- Conceptual phase
, A predictive approach to data analytics involves -
correct answer- Providing a method to be used
repeatedly to provide information
A risk manager for a grocery store wants to see if there is
a correlation between the frequency of customer slip and
fall accidents, and the time of day. Which one of the
following is a relatively simple data analysis technique
that the risk manager could use to determine this
correlation? - correct answer- Bubble plot
A risk manager's goal when using a social network is -
correct answer- To reach as many end users as
possible with the minimum amount of effort.
A worker for Build-Rite Construction Company removed
the pressure gauge and warning sticker from an air
compressor. The pressure gauge automatically shuts off
the compressor when the pressure gets too high. The
sticker warned that an explosion could result if the
pressure was too high. Without the pressure gauge in
place, the air compressor exploded. The explosion killed
